Incredible Sounds is a wholesale business that sells musical instruments

Incredible Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 2019 follow. The firm sells its merchandise for cash and on open account. During April, Incredible Sounds engaged in the following transactions:

DATE

TRANSACTIONS

2019

April 1 Sold merchandise for $3,600 to Alto Music Center; issued Invoice 3912 with terms of 2/10, n/30.

April 3 Received a check for $1,519 from Music Supply Store in payment of Invoice 2718 of March 25 ($1,550), less cash discount ($31).

April 5 Sold merchandise totaling $1,500 in cash to a new customer who has not yet established credit.

April 7 Merchandise of $80 sold on April 5 is returned for a cash refund.

April 8 Sold merchandise for $5,600 to Music Warehouse; issued Invoice 3913 with terms of 2/10, n/30.

April 10 Received payment from Alto Music Center in payment of Invoice 3912, less cash discount.

April 15 Accepted a return of damaged merchandise from Music Warehouse; issued Credit Memorandum 105 for $1,850. The original sale was made on Invoice 3913 on April 8.

April 17 Received payment from Music Warehouse for the sale of April 8, less the return on April 15; Music Warehouse deducted the appropriate cash discount from its payment.

April 19 Received a check for $1,850 as payment in full from Oldies Sounds for Invoice 3850 dated March 20.

April 20 Sold merchandise for $10,300 to Hawk Music Center; issued Invoice 3914 with terms of 2/10, n/30.

April 25 Sold merchandise for $9,900 to Modern Sounds; issued Invoice 3915 with terms of 2/10, n/30.

April 26 Sold merchandise for $7,700 to Country Tunes; issued Invoice 3916 with terms of 2/10, n/30.

April 27 Accepted a return of damaged merchandise from Modern Sounds; issued Credit Memorandum 106 for $410. The original sale was made on Invoice 3915 on April 25.

April 29 Received payment from Hawk Music Center for the sale of April 20, less cash discount.

April 30 Sold merchandise for $2,300 to Oldies Sounds; issued Invoice 3917 with terms of 2/10, n/30.

Required:

Record the transactions in a general journal.

Analyze:

What was the amount of the cash discount taken by Hawk Music Center on April 29?

Here’s the SOLUTION

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